Reasons Why You Should Change Your accountant

The Price Isn’t Right

This does not necessarily mean that the price you are paying for accountancy services is high or low but whether you receive value for your money.

It is a multifaceted issue that includes not only the amount you pay but also the level of service you receive.

Are your accountancy fees transparent? Do you know what your annual bill will be? Or do you keep receiving nasty surprises in the form of additional charges, for instance, for telephone calls, emails and other types of communication?

Has your accountant implemented time saving procedures but not passed on any of the benefits to you?

Is your accountant on top of the game? Or does he (or she) make mistakes that can prove costly for your business? Do they miss deadlines, which means that you have to pay penalties?

Do they keep up with changes in VAT, PAYE, pension benefit and other legislation?

If they are always late or squeeze you in at the last minute; if they communicate in incomprehensible jargon; if you always have to deal with someone else in the firm, then you are certainly not receiving value for your money. In which case it is time to move on.

6 Reasons Why You Should Change Your accountant

Good financial information is critical to a success of anybusiness, particularly a small business. The financialstatement is the business owners’ report card on howthe business is doing. This report card is used regularlyby bankers, shareholders, investors, tax office and byanybody looking to purchase or value your business.

How do you know when it is time to changeaccountants? Here are red flags that will give you clues:

6 Reasons Why You Should Change Your accountant

(1) Finger on the pulse

It’s your money. Knowing the daily, weekly and monthly financialcondition of your business is critical (business owners have 70% to90% of their personal net worth tied up in their business). Manybusiness owners have tried to delegate this responsibility to theiroutside accountant, controller or even the bookkeeper withdevastating consequences. Financial management is not somethingthat most business owners want to do; but it is your money; you needto understand everything you can about improving it. If youraccountant is not helping you toward that end, then you have thewrong person. This is your report card; it tells the outside world howyou are doing in business. You need to be very knowledgeable andconversant with your income statement, balance sheet andstatement of cash flows.

6 Reasons Why You Should Change Your accountant

(2) Tax surprises

You have finished out the year and feel pretty good aboutwhat you accomplished. Your accountant is busy and doesn’ttell you the taxation consequences of your performance untila few days or weeks before your tax is. You don’t have thecash then you spend the next week trying to solve theproblem. Your accountant needs to be engaged with yourbusiness in the last quarter of the year, asking questionsabout your projected profit for the year (if you don’t do this,call me for guidance) and helping you define your future taxliability. If your accountant doesn’t do this for you, ask him toget involved or find someone that will.

6 Reasons Why You Should Change Your accountant

(3) Large adjustments

If large adjustments at year-end are made by

your accountant without a clear reason why

there were made. This can be an issue withdeprecation, inventory and/or work-in-

progressadjustments.

6 Reasons Why You Should Change Your accountant

(4) Too busy

Your accountant is not easily reached and doesn’treturn phone calls in a timely manner, especially

intax season. Most decent accountants are very

busyin the first quarter of the year; but realize thatbusinesses run 12 months out of the year and areavailable to answer your questions. We’re here

foryour financial needs 24 hours a day.

6 Reasons Why You Should Change Your accountant

(5) Unexpected bills.

If you are receiving unexpected bills with little

explanation on what work was undertaken,

either their is a communication problem or you

are being taken for a ride.

6 Reasons Why You Should Change Your accountant

(6) Relationship.

Your accountant can be a trust ally in the growthand profitability of your company. If you talk toyour accountant only once a year, there is littleopportunity to create a relationship. Try sittingdown with your accountant at least quarterly to discuss your business, if you cannot get thataccomplished, find someone who is interested inyou and your business. If your business isundertaking rapid grow or change it maybe best tomeet up or conference call once a month.